This study has used the Model of Volunteeno (2000) and calculated the cash flow news and discount rate news of listed energy firms of Pakistan from 2000 to 2015. As this study has used the balanced panel data technique and estimated the random effect model after employing the Hausman Test. The results of this research show that only discount rate news is significance and positively related with unexpected stock return returns of energy firms which describe that increase in variability in the discount rate news increase the variability in unexpected stock returns. As cash flow news is insignificance which conclude that there is no permanent effect occur in the unexpected stock return due to change in book value and earning. Moreover these firms are large; it’s also concluded that large firms are not affected by the cash flow news Supervisor:- Dr Abdul Qayyum